Requiring cars in Los Angeles to reduce pollution by the same amount as cars in Topeka is inefficient

Suppose that the price of an identical sport-utility vehicle is $32,000 in U.S. dollars in the United States and $32,000 in Canadian dollars in Canada

Suppose in addition that the exchange rate between Canada and the United States is one Canadian dollar equals $0.75 U.S. dollar. Does purchasing power parity hold for SUVs between the United States and Canada? A) Yes, because SUVs have the same price in each local currency. B) No, because SUVs are more expensive in Canada than the United States. C) No, because SUVs are more expensive in the United States than in Canada. D) Without knowing interest rates, we can't say.

Suppose a consumer purchases pizza and soft drinks. If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis, then the slope of the budget line is equal to:

A. the price of pizza divided by the price of soft drinks. B. the price of soft drinks divided by the price of pizza. C. the price of pizza divided by the price of soft drinks times negative one. D. the price of soft drinks divided by the price of pizza times negative one.